Network Completion By Fall 2018 Point of Presence in Every County

Work in eastern Kentucky begins first in fall 2015 with completion by summer 2016. The Center for Rural Development is partnering with the Commonwealth, focusing on communities east of I-75. The eastern portion is also referred to as the Kentucky I-Way.

KentuckyWired is what’s called the middle mile, a physical system of fiber optic cable that will allow broadband to be brought closer to commu-nities. Think of KentuckyWired as an interstate highway system that connects the worldwide Internet to “exit ramps” in a community.

Private Sector Partners

KentuckyWired Highlights

Project History

Multiple agencies submitted budget requests to the governor for increased funding for high-speed, high-capacity fiber networks. The governor began thinking about how to fund these needs in a more coordinated way to leverage increased capacity across the enterprise.

Concurrently, the push for reliable, accessible and affordable high-speed broadband was one recommendation from the Shaping Our Appalachian Region, or SOAR, initiative, created in 2013 by Gov. Beshear and Congressman Hal Rogers.

As the Finance and Administration Cabinet (FAC) procures goods and services for the Commonwealth, Gov. Beshear tasked FAC to research and determine the best way to obtain improved Internet access, speed, capacity, affordability and reliability.

The public-private-partnership (P3) model was determined to be the best approach and the Commonwealth entered into a contract with Macquarie after a competitive solicitation.

Use existing resources – Availability Payments, since budget constraints make state funding unlikely

Utilize private sector expertise

Leverage outside funding

Deliver high priority projects without deferring other projects

Assign construction, schedule, and performance risks to private partner

Pursue potential revenue generation/sharing

Why Kentucky Chose a P3 Structure

Core Leadership Team

Figure at right shows the core leadership team that the Finance Cabinet put together. These

stakeholders provided input and direction throughout the RFP and negotiation process.

Getting Started

Kentucky Partners

RFI – Statewide Middle Mile Fiber

Optic Infrastructure, April 2014

RFP – NG-KIH Initiative Finance/

Concessionaire Partner, July 2014

RFP – NG-KIH Initiative Investment

Partner, July 2014

Commonwealth leveraged a nationally known

third party as technical advisors

Project Consultant

Ky General Assembly created $30M Next Generation Kentucky Information Highway Fund

Congressman Hal Rogers assisted with $23.5M in federal funds

Private/public partnership $271M

Solicitations Initial Funding

KentuckyWired is unique—it is an open access network—meaning local public or private Internet service providers (ISPs), such as a cable or phone company, can tap into the system and run broadband to businesses and homes—referred to as fiber-to-the-premise (FTTP) or the last mile. This partnership will create a high speed link between the global Internet and local communities.

Approximately 3,400 miles of fiber

1,100 endpoints

Next Generation Kentucky Information Highway, or NG-KIH, is branded as

KentuckyWired ...shorter and easier to remember!!!

FUN FACT

What is KentuckyWired? Why do we need it?

KentuckyWired, also referred to as Kentucky I-Way in eastern Kentucky, is a statewide open access fiber optic network which will deliver robust, reliable and affordable Internet to communities across the state through broadband technology.

Communities need reliable Internet to grow and thrive. Unfortunately, Kentucky ranks at or near the bottom of national and international rankings of broadband speed and capacity. This puts our state at a major disadvantage for attracting jobs, growing local business, and expanding education.

Broadband, like electricity, water and sewer, is now an essential service. However, it has been too expensive for private carriers to build out a high-speed, high-capacity network across the entire state. With KentuckyWired, the state will be responsible for building out the middle portion of a fiber network.

Benefits of KentuckyWired:

Businesses will be more equipped to compete globally

Educators and students will have more access to better learning tools

Health care entities will be able to collaborate and see patients/records in real time

First responders will be able to communicate better during emergencies

Lower consumer costs and improved broadband coverage statewide

QUICK FACTS

IS... A state-owned physical fiber optic network, which

is a conduit for transmitting data.

A wholesale provider of network capacity to local providers, which means they can invest in extending their local fiber networks to homes and businesses, growing their customer base. This arrangement is called open access.

IS NOT...

An Internet service provider to individuals.

Building fiber to individual homes or

private businesses.

Organization Structure

Kentucky Communications Network Authority (KCNA). Governor signed an executive order creating the Kentucky Communications Network Authority (KCNA) and its governing board to manage the KentuckyWired open-access broadband network.

Cost and Financing

Total Financing $324,400,000

Dec 2014 June 2015 Sept 2015 2018

Contract Awarded

Early Works

Approved & Started

Financial Close

All Statewide Endpoints Complete

Kentucky Communications Network Authority Executive Board

Aggressive Timeline

This project is on a quick 3-year build out of high-count fiber into each of Kentucky’s 120 counties and will deliver dedicated fiber connections to 1,100 endpoints. Construction is now under-way in eastern and central Kentucky.

The next big push for KentuckyWired is to help communities understand their critical role in preparing for building out the last mile network (FTTP). They can work with existing providers, recruit/work with new providers or create a municipal system.

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Website

KentuckyWired.ky.gov

Email

KentuckyWired@ky.gov

Telephone

502-782-9549

Revised 10-12-15

Communities Get Fiber Ready